On January 1, 2018, Jakeman’s Chiropractic Corp. (JCC) borrowed €100,000 from its bank. JCC signed a note payable due on December 31, 2019. Pertinent details follow:
■ The interest rate on the note was 5% payable annually each December 31. The market rate of interest for obligations of this nature was also 5% on the issue date.
■ JCC’s year-end was December 31. It did not accrue interest throughout the year.
■ Exchange rates of consequence were:

Required:

Prepare journal entries to record:
a. Issuance of the note payable on January 1, 2018.
b. Revaluation of the liability on December 31, 2018.
c. Payment of interest on December 31, 2018.
d. Revaluation of the liability on December 31, 2019.
e. Payment of interest on December 31, 2019.
f. Derecognition of the liability on December 31, 2019.

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January 1, 2018 December 31, 2018 December 31, 2019 Average rate 2018 Average rate 2019 Euro €1.00 €1.00 €1.00 €1.00 €1.00 Canadian dollar C$1.44 C$1.47 C$1.42 C$1.45 C$1.43